This will take the company’s standard rate of pay from £7.08 per hour to £7.36, as of 30 August. The new rate will apply to staff both over and under 25 but will not go to the 1,500-2,000 workers under 18 who receive a lower training wage during their first six months in the business, or its 24,000 non-store staff and store managers.
Sainsbury’s is one of several retailers targeted by campaigners at Share Action and Citizens UK, who have both demanded major retailers pay the National Living Wage Foundation’s benchmark – calculated according to the basic cost of living – of £7.85 across the UK and £9.15 in London.
This has already resulted in the Co-operative giving shop floor staff an 8% pay rise this year so they will earn £7.28 an hour from October and £7.30 an hour from next year.
Sainsbury’s announcement was welcomed by Gillian Owen, head of media at Citizens UK: “It’s a brilliant step,” she said. “We welcome it and encourage Sainsbury’s to continue to look at how it could implement a living wage as and when possible. We know it is leading in its sector and particularly welcome the fact Sainsbury’s is including all staff in this wage rise, regardless of age.”
In comparison, Tesco currently pays its staff £7.38 per hour. However, as Tesco staff are not paid for breaks they earn around £269.74 per working week, compared with Sainsbury’s staff who are paid for breaks and so earn £287.04.
This news follows the summer budget’s announcement of a national living wage, to be phased in between 2016 and 2020. It is expected the wage will begin at £7.20 per hour in April 2016 for over-25s, and rise to around £9 per hour by 2020.
Commenting on the retailer’s announcement, Sainsbury’s CEO Mike Coupe said: “We’re delighted to announce a 4% pay increase for the colleagues who work in our stores across the country. We know what a difference they make to our customers each and every day and we’re totally committed to rewarding them well for the great service they provide.
“I’ve talked to thousands of colleagues over the past year and they tell me how much they value their package of benefits and the flexibility that we can offer as an employer, as well as hourly pay, which has always been well over the minimum wage. Their hard work, talent and dedication have been central to our success and will remain so in the future.”
